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Parv Jain

Why Pay More? Tesla Cuts Prices on Y, X, S Models by $2,000

Updated: May 15

Tesla cuts prices

Tesla has reduced the prices of its Model Y, Model X, and Model S cars by $2,000 in the U.S. This change came shortly after the company reported lower-than-expected sales for the first quarter. According to Tesla's website, the starting price for the Model Y is now $42,990, with higher-end versions costing $47,990 and $51,490.


Tesla has lowered the prices of its cars: the basic Model S now costs $72,990, and the plaid variant is $87,990. The Model X base model is priced at $77,990, with its plaid variant at $92,900. Additionally, Tesla announced on X (formerly Twitter) that it will end its referral program, which offers extra incentives for purchases through existing customer referrals, after April 30. This program has been a common sales booster used by many automakers.


Elon Musk has delayed his trip to India where he was supposed to meet Prime Minister Narendra Modi and discuss Tesla's entry into the South Asian market. Additionally, Tesla is cutting over 10% of its global workforce, according to an internal memo. Earlier, the company also canceled plans for a $25,000 budget-friendly car, which many investors had hoped would boost its mass-market growth.


Tesla reported that its global car deliveries dropped for the first time in nearly four years this month, despite recent price cuts. The company will announce its earnings for the first quarter on Tuesday.


FAQs


Q1. Why did Tesla reduce the prices of Models Y, X, and S?

Tesla lowered the prices to boost sales after reporting lower-than-expected delivery numbers.


Q2. What changes did Tesla make to the referral program?

Tesla announced it will end its referral program, which offered incentives for purchases made through existing customer referrals, after April 30.


Q3. Why has Tesla delayed its expansion into India?

The trip to India, where Elon Musk was to meet with Prime Minister Modi and discuss market entry, has been postponed due to internal adjustments and strategic planning.


Reference

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